BUSINESS BRIEFING | COMPANY NEWS; Beijing Automotive Makes An Offer For Opel

By BLOOMBERG NEWS

Published: July 4, 2009

General Motors said the Beijing Automotive Industry Holding Company had submitted an offer for its Opel division, giving the bankrupt automaker more options if negotiations with Magna International failed. Beijing Automotive made the nonbinding proposal
after examining Opel's books, Chris Preuss, a G.M. spokesman in Zurich, said, declining to provide details. Magna, Canada's biggest auto parts manufacturer, was chosen in May by the German government as
the preferred bidder for Opel, which has its headquarters outside Frankfurt.

In Britain, where Opel owns two factories that make vehicles under the Vauxhall brand, the government may lend money to help complete the sale to Magna, the business secretary, Peter Mandelson, above, said. ''We are prepared to financially underwrite
that deal,'' Mr. Mandelson told reporters after a meeting at Vauxhall's factory in Luton, England. Potential government aid would include loans and loan guarantees ''for which we have to
have interest paid and some securities.''